One of the best qualified retirement plans in today’s industry is the Solo 401 k self-directed plan. This type of retirement plan is a remarkable investment especially for self-employed individuals and owners of small businesses. These are the most important eligibility requirements to comply with if you are planning to establish the Single-Participant 401k. The Individual k retirement fund could be used to finance several investment options.
Fundamental Things about the Solo 401 k
These are the basic things to know and understand about the Single-Participant 401k for plan owners:
- High Contribution Limits – In 2015, the maximum yearly contribution for salary deferral is $18,000. The amount could be higher for participants who are 50 years old and above since they are entitled to a $6,000 catch up contribution. With the inclusion of profit-sharing contribution, the maximum contribution per year is $53,000 for participants below 50 years old.
- Checkbook Control – The Solo k pension plan is not like any other qualified pension plans. It guarantees easy and fast access to your retirement money since the plan owner is the trustee of his account. This means no custodian consent is necessary to use your retirement savings to fund a qualified investment and transaction.
Tips to Maximize Funded Investments with Qualified Retirement Plans
The small business 401 k pension plan is easy to establish as long as you are a qualified participant. There are numerous 401 k plan administrators but it is essential to always choose the trusted and reputable plan providers. Pension plans particularly the Self-Directed 401k offer numerous benefits and advantages to plan owners.
Here are important tips on how to maximize your investment using the Individual Self-Employed 401k:
- Be specific. Know your objectives and what you want to accomplish from your investment.
- Set measurable goals. Your business goals must be realistic and measurable with a clear plan of how you can achieve your goals.
- Focus on attainable objectives. Make sure your business goals are easy to materialize and could be realistically achieved.
- Go for relevance. Your business plans must be timely and relevant to your investment. Your goals, objectives and visions must have a positive impact on the operations of your business.
No matter what type of investment you plan to venture into, qualified retirement plans particularly the Individual k plan for self-employed individuals offer numerous advantages. It is a reliable source of funds for lucrative investments.
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